7 Myths People Believe About Car Insurance

When buying car insurance, it is important that you are not misled by the myths people widely have about car insurance. Here discussed is a checklist which will help you get your facts right.

When buying car insurance, it is important that you are not misled by the myths people widely have about car insurance. Here is a checklist which will help you get your facts right.

1. Colour of the car has a bearing on the premium of car insurance

There are people who believe that the colour of their car has a bearing on the car insurance premium. It is perceived that if the color of the car is red, the premium will be higher than normal. However, this is not true. In no way does the color of the car influences your insurance premium.

The premium of your car insurance is in fact dependent on several other important aspects like the age of your car, your past track record of accidents as determined by your history of claim filings, the make, model and the engine size of your car.

2. In case a third person is driving your car and he meets with an accident, he will be covered under his own policy

This is not true. You need to be sure that you entrust your car in safe hands only. If the person driving your car meets with an accident any claim that you file will be recorded and paid under your own insurance policy and not the policy owned by the driver. Every car is uniquely covered by an insurance policy and not the driver.

3. I am a good driver I don’t need to own comprehensive car insurance

A lot many people are very confident about their driving skills and feel that paying for a comprehensive insurance cover is waste of money. But this is no good reason to not to buy a comprehensive cover. A comprehensive cover protects you from other liabilities apart from accident. It would take care of any loss or damage to your car due to theft or a natural/man-made calamity. Besides, it is a myth that good drivers don’t meet with an accident. An accident can even happen even if there is no fault of the driver.

4. You can buy private car insurance and still expect to be covered if you use your car for business

Private car insurance will provide you cover only if you are using it for your personal use. However, if the vehicle is being used for a business like taxi services, you will need to buy a passenger/goods carrying vehicle insurance.

5. My belongings in the car are as well covered under the car insurance

If you have a laptop or a mobile lying in the car and the same is stolen it is not going to be covered under you car insurance policy.

6. My Credit score does not affect my car insurance premium

Insurance companies believe that there is good correlation between claim filing history and credit score. Those with a good credit score are less likely to file for a claim. Hence, some insurance companies may offer you a discount if you have a good credit score.

7. I already have car insurance and so I don’t have to buy one for my new car

Your insurance cover on your old car will not cover the damages caused to your new car in an accident. So, you do need to buy a separate cover.

Compare Car Insurance And Save Money

The highlight of comparing insurance online is that you can enter your requirements on the computer screen and receive all the policy details on the screen, in this case similar types of insurance plans will be shown to you simultaneously based on the information provided by you.

With the fuel prices going up everything might seem extremely pricey, even though nothing much can be done about the fuel prices but there are ways you can opt for a money saving policy when it comes to car insurance. If you do a thorough research you will be surprised to know that different insurance companies offer different premium for the same coverage. This means that, when you are required to buy car insurance, you have a horde of bargaining chips on your side of the table. Thus if you have a new car, it is natural to look for a low premium, wider coverage best auto insurance policy. As a matter of fact, even if you already have an existing insurance, it really helps to compare various auto insurances available.

In order to buy car insurance you need to have the quotes from various companies, it is a tedious job as you would be required to make several phone calls or visit the insurance providers personally. So, in such a scenario comparing the car insurance online is the best option. The highlight of comparing insurance online is that you can enter your requirements on the computer screen and receive all the policy details on the screen, in this case similar types of insurance plans will be shown to you simultaneously based on the information provided by you. Within no time you get to know which company offers what scheme, helping you to decide on the best car insurance.

While comparing the car insurance plans it is important to remember that there are various factors that will affect your final premium quote, managing those factors well is one of the best money saving policy. The factors that are likely to influence your premium are your age, your driving record, condition of the car etc. After taking all these points into account if you think that you have found the best car insurance, you can go ahead and buy the car insurance online. If you are not comfortable with online transactions then you can always leave a request and the company representatives will get in touch with you.

What points to consider while comparing various insurance plans?

Minimum liability: The first point to check is the minimum liability coverage even though it is expected that all companies will provide approximately the same minimum liability coverage, it is better to cross check to be doubly sure. There might be exceptions like a policy includes higher limits than what is authorized by law.

Extra Coverage: Next point is to find out what extra coverage is being provided, whether the car insurance includes features like collision insurances or not, if so what is the limit?

Financial Risk: Once you are done with the cross checking of the above points, it is important to assess the extent to which you are willing to take the financial risk. In case you're fine with losing a significant portion of the value of your automobile you might consider the cheapest policy with the least coverage. On the flip side, if you do not intend to take a chance you'll opt for the most comprehensive policy or the best car insurance even if it comes with the highest price tag.

Other Factors: Price alone should not be the deciding factor while choosing a car insurance company, other factors that play a very important role in saving your money in th
e long run are given below

Ranking of the car insurance company

The car insurance company’s past track record that reflects on customer service and claim payment and

The car insurance company’s capability.